GREENSBORO, N.C. — Three out of four Taxpayers get refunds. It's been that way for years and years and years. So, what do most folks do with the refund money?
According to a GoBanking.com survey:
25% of people said they would put it in savings 21% of people said they would pay bills 19% of people said they would pay off debt.
2 Wants To Know asked a money expert for two ways to pay off debt.
AVALANCHE METHOD
“There's the avalanche method where we take our credit cards and debt and we start to pay off our highest interest rate debt first. Then we go on to the next one and we build momentum that way,” said Scott Braddock of Scott Braddock Financial.
There are all kinds of debt, from credit cards to car payments, and other loans. No matter what method you use, you still keep paying on the other debts. In the Avalanche Method, you put the most money on the high-interest debt, because that interest costs you more money every month.
It may take a little longer to see results, so here's a quicker debt payment method.
THE SNOWBALL EFFECT
“The snowball effect is another great way. We're going to tackle the smallest debt first and then go on to the next larger size debt and that is a way to build momentum,” said Braddock.
Snowball or Avalanche, the idea is to have a debt goal and to make progress that you can see instead of just feeling like the payments will never end.